Adimata Shakti Pratishthan, Amravati, Amravati V. Commissioner of Income Tax (Exemption), Pune, Pune

ITA 1002/PUN/2023

AI Insights

The case involves Adimata Shakti Praishthan, a charitable trust based in Amravati, which appealed against the order of the Commissioner of Income Tax (Exemption), Pune. The Commissioner had rejected the trust's application for registration under section 12AB of the Income Tax Act due to insufficient evidence and compliance regarding the genuineness of the trust's activities. The Tribunal noted that the trust had not received a notice to cure defects in their application, which led to the non-compliance. Emphasizing the welfare nature of the Income Tax laws and the constitutional directive principles, the Tribunal decided to give the trust another opportunity to comply with the requirements for registration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136220 (ITAT-PUNE)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-10-2023
• Assessment Year: misc
• Appeal Filed On: 12-09-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DIVYESH TRIPATI
• Keywords: Charitable institution
• Section: 80G

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “ए” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “A” BENCH, PUNE BEFORE HON’BLE SHRI PARTHA SARATHI CHOUDHURY, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1002/PUN/2023 Adimata Shakti Praishthan, Amravati Virul Ronghe, Tq. Dhamangaon Rly., Dist. Virul Amravti-444709 PAN: AAGTA7975E . . . . . . .अपीलाथी / Appellant बनाम / V/s The Commissioner of Income Tax (Exemption), Pune . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Mr Divyesh Tripati Revenue by : Mr Ramnath Murkunde सुनवाई की तारीख / Date of conclusive Hearing : 13/10/2023 घोषणा की तारीख / Date of Pronouncement : 13/10/2023 आदेश / ORDER PER G. D. PADMAHSHALI; The present appeal u/s 253(1)(c) of the Income-tax Act, 1961 [‘the Act’] is filed against the DIN & order No. ITBA/EXM/F/EXM45/2023-24/1054413218(1) dt. 18/07/2023 passed by the Commissioner of Income Tax (Exemption), Pune [‘CIT(E)’] u/s 12A(1)(ac)(vi) of the Act. Adimata Shakti Praishthan, Amravati ITA No.1002/PUN/2023 ITAT-Pune Page 2 of 4 2. We have heard rival contention and perused the material placed on records and note that, the appellant vide Form No.10AB dt. 31/01/2023 made an application to the respondent under clause (iii) of section 12A(1)(ac) of the Act thereby seeking regular/final registration u/s 12AB of the Act. The aforestated application by the impugned order is rejected by the registering authority Ld. CIT(E) for his failure to arrive at positive satisfaction about genuineness of activities of the assessee in the absence of evidences and compliance of discrepancies communicate. 3. We also note that, upon appellants failure to annexe required documents as contemplated u/r 17A(2)(k) of IT- Rules, the Ld. CIT(E) by notice dt. 13/04/2023 accorded an opportunity to make good the deficiency in the application, the assessee complied accordingly. After considering the submission of the appellant, certain discrepancies were noticed and for the reason by a notice dt. 07/07/2023 the appellant was again called upon to cure the defects and clarify the discrepancies; however this remained unattended for the good reason of non-receipt of notice by the appellant. Adimata Shakti Praishthan, Amravati ITA No.1002/PUN/2023 ITAT-Pune Page 3 of 4 4. It has to be appreciated that the purpose of the provisions for registration of trust u/s 12A/12AB and granting of recognition u/s 80G of the Act, derives their spirit from Directive Principles of State Policy enshrined in the Constitution of India. The Govt. of India makes every endeavour to provide welfare to one and all in the society at large, and in view thereof the registration for public charitable trusts are given in order to ensure that through these charitable trusts benefits flows to entire society, thus the Directive Principles of State Policy are achieved. These provisions of registration u/s 12A/12AB and granting of recognition u/s 80G of the Act enhance socio economic welfare of the society. Furthermore, Income Tax laws are welfare legislations and not penal in nature, therefore, in larger interest of justice with forgoing observations, we are of the considered view that, the appellant deserves one more opportunity to make good the defects/shortcomings. In view thereof, without offering our comment on merits of the case, we set aside the impugned order and remit the matter back to the Ld. CIT(E) for de-nova consideration, preferably in three effective hearings to the appellant assessee. Adimata Shakti Praishthan, Amravati ITA No.1002/PUN/2023 ITAT-Pune Page 4 of 4 5. Before we depart, it necessitated us to place on record the oral statement of the Ld. AR made during the course of physical hearing that, appellant undertakes to attend the discrepancies communicated and ensure necessary compliance in accordance with law so has to assist this remand proceedings and also undertakes to adhere to timelines without seeking any unreasoned adjournment. 6. In result, the appeal is ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, order pronounced in open court on this Friday 13 th day of October, 2023. -S/d- -S/d- PARTHA SARATHI CHAUDHURY G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ PUNE ; दिन ांक / Dated : 13 th day of October, 2023. आदेशकीप्रधिधलधपअग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr.CIT(Exemption),Pune 4. The CIT-Concerned (MH-India) 5. DR, ITAT, Pune Bench ‘A’, Pune 6.ग र्डफ़ इल / Guard File. Ashwini आिेश नुस र / By Order वररष्ठदनजीसदिव / Sr. Private Secretary आयकरअपीलीयन्य य दिकरण, पुणे / ITAT, Pune.